The U.S. Department of Commerce is investigating a local manufacturer’s bid to have the government place tariffs on imported kegs from Mexico.
American Keg Co., a manufacturer of American steel kegs from Pottstown, petitioned the federal department in 2018 seeking action.
In a response this week, Commerce said exporters from Mexico have sold refillable steel kegs at less than fair value in the U.S.
Once the Dept. of Commerce issues an affirmative final decision, the U.S. International Trade Commission, an independent agency, examines whether a U.S. industry has been injured because of the practice of subsidized imports, said Vanessa Ambrosini, a spokesperson for the International Trade Administration, in a statement.
American Keg filed the petition in September 2018. Company officials did not respond to requests for comment.
The trade commission makes its final injury determination about 45 days after the commerce department makes its final decision, which would be about Sept. 26, she said.
If the trade commission reaches a final decision, the commerce department will issue an antidumping order on Oct. 3 and collect taxes for those imported items, Ambrosini said.
If it reaches a final decision, it will collect taxes on imported steel kegs. If it does not reach a final decision, that would end the investigation, she said.
Upon publication of the final tariff determination, the department will instruct U.S. Customs and Border Protection to collect cash deposits equal to the applicable final weighted-average dumping rate.
In 2018, imports of refillable stainless steel kegs from Mexico were valued at an estimated $13.4 million.